On Dec. 1, the state Gaming Facility Location Board (GFLB) announced its recommendation of all three New York City-area casino applicants for final approval: Bally’s Bronx, and Hard Rock Metropolitan Park and Resorts World, both in Queens. The state licensing board now has final say, expected later this month.
At a public meeting at the CUNY Graduate Center in midtown, the five-member board, chaired by former Deputy Mayor for Housing and Economic Development Vicki L. Been, explained its careful evaluation of each project’s estimated economic impact, local impact and workforce contributions.
The board also visited each of the three sites on Nov. 17 for a firsthand look at how each casino complex would be situated in its respective neighborhood.
Now, with the board’s approval, Bally’s is just one step away from building a $4 billion complex that includes a casino, 500-room hotel, retail, spa, food hall, rooftop bar and entertainment venue on the site of the former Trump Corporation-owned golf course inside Ferry Point Park.
Applicants in the audience, including Bally’s Chair Soo Kim, showed little reaction after the board declared the approvals. However, a group of Queens protestors broke into chants of “Shame on you!” and went outside to continue rallying against the Metropolitan Park development in Flushing.
At a press conference following the meeting, Been said the board and its consultants carefully analyzed each application and the overall market and concluded that approving all three applicants was most beneficial for the city and state.
Though the board’s approval is key for the bidders, final state licensure is “not a rubber stamp,” Been said.
The license commission will be “thorough, exacting and tough” in ensuring that applicants can fulfill their promises to their respective communities, she added.
Collectively, billions of dollars are at stake among the three projects.
Each company awarded a license must pay a $500 million fee, which, in Bally’s case, will be funneled to the MTA.
The three projects are expected to generate $7 billion in gaming tax revenue between 2027 to 2036, plus approximately $5.9 billion in other taxes, according to the board. Additionally, $10.7 million annually would be allocated for problem-gambling programs throughout the state.
About GFLB’s decision to approve the Bronx casino, Bronx Borough President Vanessa L. Gibson said the borough would no longer be left behind and the opportunity could create grown and economic opportunities for residents.
“As we move into the next phase of this process and await the Gaming Commission’s review of the Board’s recommendations, we will continue to ensure that this project remains community-centered and community-focused through ongoing engagement with residents, small businesses, community organizations, elected officials, and all other community stakeholders,” Gibson said in a statement.
Ready to go
If built, Bally’s Bronx casino will be the company’s largest development and the board flagged its uniqueness as a potential concern.
In a final report on the three projects, the board said Bally’s most comparable development is its Chicago casino, which is now underway — but at only half the budget of the Bronx proposal.
“Overall, the board finds Bally’s project execution record mixed, and the company will need to closely manage the construction project,” the report stated. “The board also emphasizes that corporate leadership will need to prioritize the Bally’s Bronx project within its broader development pipeline.”
But in an interview following the press conference, Kim said his company was ready to deliver.
If awarded a license, he said he believes Bally’s can beat its projected completion date of mid-2030. He said he plans to build as quickly as possible, especially since a large part of the site is currently an empty parking lot.
Though Kim was unsure of how soon Bronxites will be able to apply for an estimated 15,000 union construction jobs, he said all the necessary pieces are in place to start work quickly. “It’s a commitment by Bally’s to the Bronx, and so I think you’ll see us try to live to that effort.”
In its application to the state, Kim said Bally’s was “quite conservative on our numbers” to ensure that it would generate enough revenue to keep its promises to the Bronx, which included reinvesting 1% in annual gross gaming revenue back into local neighborhoods and a community benefits package valued at $765 million.
According to the board, consultants agreed that the company’s estimates were reasonable if not low. They concluded Bally’s “gross gaming revenue, net revenue and operating income could exceed Bally’s own estimates.”
“We feel quite confident we’ll be able to at least meet the projections that were in our application,” said Kim. “We weren’t trying to game it so that we looked better.”
If awarded a casino license, Bally’s would have plenty of ready customers, including many who would not gamble but would stay at the hotel, visit the spa, eat at restaurants and attend shows, said Kim.
“From a public policy perspective, my theory is that gaming will happen even if you ban it,” Kim said. “Bringing those activities to the surface, regulating the crap out of it, you know, taxing the crap out of it — I think it’s the right public policy.”
Having grown up in New York City, he was pleased that all three applicants made it to the final stage.
“Thinking that that money goes to public schools is a good thing,” he said. “The more of it, the better.”
As the project awaits one final approval, Kim expressed optimism that the Bally’s casino can and will deliver for the Bronx. “We have the financing and the money to get this built now.”
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, subscribe to our newsletter and follow us on Twitter, Facebook and Instagram!
